Introduction to the EMA Crossover Signal Indicator
One of the most basic ways traders detect trend reversals objectively is with the use of moving average crossovers. Traders assume a trend reversal whenever a faster moving average line crosses over a slower moving average line, which is the concept that this indicator is based on.
What is the EMA Crossover Signal Indicator?
The EMA Crossover Signal Indicator is a momentum or trend reversal signal indicator which is based on the concept of moving average crossovers using Exponential Moving Averages (EMA).
It plots spring green arrows pointing up to indicate a bullish trend or momentum reversal. Inversely, it also plots red arrows pointing down to indicate a bearish trend or momentum reversal.
How the EMA Crossover Signal Indicator Works?
The EMA Crossover Signal Indicator uses a pair of EMA lines to detect trend or momentum reversals. It detects bullish reversals whenever the faster EMA line crosses above the slower EMA line. It also detects bearish reversals whenever the faster EMA lien crosses below the slower EMA line. It then plots the arrows to indicate a reversal whenever the moving average lines crossover.
How to use the EMA Crossover Signal Indicator for MT4
This indicator allows users to modify the sensitivity of the indicator’s signals within the indicator settings.
The “FasterEMA” and “SlowerEMA” variables modify the number of bars used to compute the underlying EMA lines. Traders can change these input variables to adjust the sensitivity of the indicator. Traders can use slower moving average lines to lessen the number of reversal signals, including the false signals during choppy market conditions.
Traders can use this indicator as a trend or momentum reversal signal indicator. Users can interpret the appearance of the arrows as a trend or momentum reversal signal and open trades based on these signals. However, it is best to use these signals in confluence with other technical analysis indications.
Buy Trade Setup
When to Enter?
Open a buy order as soon as a spring green arrow pointing up appears. Set the stop loss on the support below the entry candle.
When to Exit?
Close the trade as soon as a red arrow pointing down appears.
Sell Trade Setup
When to Enter?
Open a sell order as soon as a red arrow pointing down appears. Set the stop loss on the resistance above the entry candle.
When to Exit?
Close the trade as soon as a spring green arrow pointing up appears.
Conclusion
This indicator can be a useful trend reversal signal indicator. However, this indicator is preset to use EMA lines that are very fast – 5-bar and 6-bar EMA lines. This combination is a popular combination used to detect momentum reversals fast. However, this combination also produces a lot of false signals during choppy markets. Users can modify these inputs using other combinations and test for more accurate moving average combinations. Moving average crossover signals should also not be used as a standalone trade signal as it is prone to fake signals during ranging markets. Again, it is best used in confluence with other technical indications as an additional confirmation.
MT4 Indicators – Download Instructions
EMA Crossover Signal Indicator for MT4 is a Metatrader 4 (MT4) indicator and the essence of this technical indicator is to transform the accumulated history data.
EMA Crossover Signal Indicator for MT4 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
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How to install EMA Crossover Signal Indicator for MT4.mq4?
- Download EMA Crossover Signal Indicator for MT4.mq4
- Copy EMA Crossover Signal Indicator for MT4.mq4 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader 4 Client
- Select Chart and Timeframe where you want to test your MT4 indicators
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader 4 Client
- Right click on EMA Crossover Signal Indicator for MT4.mq4
- Attach to a chart
- Modify settings or press ok
- Indicator EMA Crossover Signal Indicator for MT4.mq4 is available on your Chart
How to remove EMA Crossover Signal Indicator for MT4.mq4 from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader 4 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
EMA Crossover Signal Indicator for MT4 (Free Download)
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